Optimizing the 2017 Budget Allocation for Personalized Medicine

August 15th, 2016

Jordan Clark
Ryan Keeling

Jordan Clark and Ryan Keeling of Diaceutics appreciate the difficulties in determining the unknown costs of a diagnostic program, but are on hand with advice and solutions to successfully guide you through the budgeting process.

As a project leader or executive on a therapy team, you may find that determining the unknown costs of your precision/personalized medicine diagnostic program is challenging. You may be confused about what budget to allocate and when. We at Diaceutics sympathize.

So let’s see if we can help in these easy steps.

  1. Get a better understanding of the direct and indirect financial costs surrounding the companion or complementary diagnostic by reading these two Expert Insights:
    1. The indirect costs of failure at The Return On Investment of Better CDx Planning Based on Early PD-L1 Observations in NSCLC
    2. The direct costs of launching a test at Mystery Solved! What is the Cost to Develop and Launch a Diagnostic?
  2. Finally, ask yourself this simple question. If Diaceutics were able to prove that between 25 to 35 per cent of our drug’s peak sales are dependent upon understanding and investing in a complex diagnostic pre-launch runway (because tests take longer to get airborne than drugs), shouldn’t we bring the runway engineers on board to help us map out what to spend and when?


The specific method we use to help our clients can do just that and figure out what their diagnostic runway needs will be in terms of time and investment. As a rule of thumb it costs $50m to commercially align testing with a targeted therapy. Thirty-five per cent of that should be spent pre-launch to build the runway and 65 per cent should help with accelerating testing after take-off.

We can go further than that though and help you link specific investments in better testing with return on patients treated. Executed well, the return on investment is superior to most other commercial stage investments, whereas late or insufficient investment in testing can create a barrier to therapy access.

If you are planning your budgets for 2017 and wondering what and where to invest, give yourself 30 minutes to take the PM Readiness test and read the Expert Insights, then call Diaceutics to see if we can help. We’re confident we can.


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